Thursday, November 21, 2019

Business Models And The Changing Business Environment Essay

Business Models And The Changing Business Environment - Essay Example These models are applied so that the needs of the customers can be fulfilled. The enterprises require to structure those practices in such a way that the business model connect with innovation and forming of the business strategy (Hedman & Kalling, 2003). In this report a discussion about the changing environment will be presented. This will exhibit the development in the global economy and the change in the traditional practices which lead towards technological growth and development. Innovation in communication and the development in the technology will lead to the establishment of the global trading regime. Such methods have ignited the competition because the customers have more options available for choosing from the best available option. This practice has forced the organisations in developing a more customer centred approach. This study will show the application of the business models used by Apple Inc. which will clearly differentiate the traditional and the modern way the b usinesses are structured. ACCOUNTANTS VIEW OF THE BUSINESS MODEL The business model in accounting is related to the economic theory of the firms. This is related to the measurement issues which are within the financial reporting systems. The understanding of the organisational and financial structure of the business is also referred to as the accountant’s view of the business model. The incorporation of the business model is observed in the business plan, income statement and the cash flow projections of the organisation. Similarly, the application of the model is more conceptual rather than financial. The application of the model emphasises on the use of technology, benefits to the customers, identification of the target market segment, ensure appropriate flow of the revenue, mechanism for capturing value and utilising those for accomplishing the organisational goals and objectives (EFRAG, 2013). These methods are important because they create value for the customers, entice the payments and convert the payments into profits for the organisation. This shows a direct relation with the economic as well as accounting benefits for the organisations (Hedman & Kalling, 2003). DEFINITION BY TEECE (2010) The definition presented by Teece (2010) about the application of the business model specifies that the essence of the model is more conceptual rather than financial. The knowledge which is required for developing the business model requires that there is extensive knowledge of the economy, changing trends of the business and the adaptation towards e-commerce, outsourcing of the major business functions and restructuring the financial services around the globe. The excessive use of technology and the development of the model have developed an understanding of the ways the businesses need to understand and determine the customer value (Teece, 2010). The business model has a direct relation with the theoretical foundation of the business and this requires that a n equilibrium measure is created which develops perfect competition in the real world (Teece, 2010). The customers are less concerned about the products and they are more centred towards the solutions to their needs. Innovative ideas which aim at satisfying the customer needs succeed in attracting more customers rather than the traditional methods using which the business functions

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.